A Comprehensive Guide to Starting a Travel Bureau in Bali

Are you thinking of setting up a travel agency in Bali? While the region is one of the world’s most popular tourist destinations, setting up your own tourism company can be a complex endeavor. Not only do you face strict regulations and complex licensing processes, Bali has also enhanced government crackdowns on illegal foreign-owned businesses in the island’s tourism sector.

This guide will walk you through the essential steps to set up a travel agency on the island legally. From legal requirements to registering your business, we’ll equip you with key insights needed to launch your own travel business in Bali. 

Legal considerations for operating a travel agency in Bali

In Bali, there is legal distinction between a “travel agency” and “travel bureau”. A travel agency acts as a retailer or intermediary in selling services that sells components such as airline tickets, hotel rooms, or tour packages but do not typically organize or operate the tours themselves.

On the other hand, a “travel bureau” plans, organizes, and sells full tour packages (e.g., creating a complete itinerary, arranging all components like transportation, accommodation, and tour guides). They act as the operator and are legally responsible for the entire package. Foreign-owned travel companies operating as tour operators in Indonesia typically register under this category as “Biro Perjalanan Wisata” (BPW).

What Services Can You Offer as a Travel Bureau in Bali?

As a travel bureau in Bali, you can offer a broad range of services legally under Indonesian tourism regulations such as the following:

• Visa handling services: assisting tourists with visa applications such as tourist visas and visa-on-arrival, helping clients navigate and complete necessary documentation.
• Creation and sale of tour packages and custom itineraries: includes arranging accommodations, meals, transportation, and guided tours by partnering with local providers.
• Arranging transportation: options such as airport transfers, car rentals, and shuttle services to popular tourist spots.
• Accommodation booking services: securing hotel rooms, villas, or guesthouses often through partnerships with local establishments to provide competitive rates.
• Other tourism-related services: in compliance with safety, health, and environmental protection standards including “K3L (Keamanan, Keselamatan, Kesehatan, dan Lingkungan Hidup)” and business quality certifications (“Sertifikat Standar“) which ensure safe and responsible operations.

Restrictions When Operating a Travel Bureau in Bali

Operating a travel bureau in Bali as a foreigner does have restrictions as part of the Positive Investment List. The goal of these restrictions is to protect local economic interests, and preserve environmental and cultural standards in Bali. Here’s what you can’t do as a travel bureau:

• Foreigners cannot perform certain roles onsite, such as working as tour guides or physically leading group tours. These roles must be fulfilled by local Indonesian nationals.
• Certain micro, small, and medium tourism enterprises (like small-scale car rentals or small tour operations) are reserved exclusively for domestic investors.
• All travel bureaus must secure memberships with the Association of Indonesian Tours and Travel Agencies (“ASITA”) to ensure adherence to industry standards and regulations.

Why you Need to Secure an ASITA Membership for your Travel Agency in Bali

Membership in the Association of Indonesian Tours and Travel Agencies (ASITA) is crucial for travel agencies operating in Bali. As an organization, ASITA serves as a voice for travel agencies in Indonesia, advocating for both local and national interests. 

As a member, you get access to resources such as training programs, marketing support, and industry research. You can connect with professionals in the tourism sector, including hotels, tour operators, and government officials. An ASITA membership also provides guidance on best practices in the travel sector so members can stay informed about market trends and regulation changes. 

Your membership signifies adherence to industry standards and regulations which enhances your credibility within the tourism sector. As a collective body, ASITA also has greater negotiating power when dealing with suppliers and partners. You can secure discounts on entry tickets to tourist attractions and reduce operational costs while providing better deals to your clients. 

Participation in unlicensed tourism activities or offering services outside the scope of authorized tourism licenses is prohibited and subject to government enforcement and penalties.

With a deep understanding of the local regulatory landscape, Emerhub can provide guidance for setting up a PT PMA for your travel business in Bali. Our team ensures that clients have all the necessary documentation and meet the requirements for business registration and relevant licenses issued by the Ministry of Tourism. 

To operate a PT PMA business in Bali, your travel agency must meet the following criteria:

• At least two shareholders are needed (can be foreign individuals or entities). Local partners are not mandatory unless specified by the nature of the business.
• A director must be appointed who will handle daily operations. This individual must obtain a tax number (NPWP), which can be acquired through the KITAS (Limited Stay Visa) process.
• Your travel agency must have a physical address in Bali that complies with local regulations.
• Minimum of IDR 2.5 billion (USD 150,000) capital requirements is required before registration.
• After registration, obtaining various licenses through Indonesia’s Online Single Submission (OSS) system is necessary to legally operate the business

How to set up your travel agency in Bali

To set up a travel agency in Bali, you need to register your company with the Ministry of Law and Human Rights. Together with Emerhub, we can assist you with our local experts on the step-by-step process of how to register your travel agency in Bali:

1. Establish a PT PMA business – to operate legally in Bali, foreign investors typically need to establish a PT PMA business. Emerhub can help you register your company with the Ministry of Law and Human Rights. You must provide a name in both Bahasa Indonesia and English. We conduct name availability checks and guide you through the registration process to secure your business name.
2. Obtain necessary tourism licenses – our local experts can facilitate the application process for these licenses to ensure that all documentation is prepared and submitted:
   • Security, Health, and Environmental Standards (K3L) – or “Keamanan, Keselamatan, Kesehatan, dan Lingkungan Hidup,” is a self-declaration statement to ensure a safe, healthy, and environmentally responsible workplace, preventing work-related accidents and illnesses. It also aims to protect workers and maintain smooth production processes.
   • Sertifikat Standar – refers to various quality or business standard certificates related to tourism businesses that signifies that the company meets required operational and service quality standards mandated by regulatory or certification bodies. For example, travel agencies may need to meet standards subject to audits to prove compliance with business norms, safety protocols, and professional service delivery.
   • Environmental License (Surat Pernyataan Pengelolaan Lingkungan) – designed to ensure that businesses operating within the tourism sector adhere to environmental standards and practices that protect Bali’s natural resources and ecosystems.
3. Register with ASITA – Emerhub can help prepare the necessary documents for ASITA registration, including recommendation letters from existing members, and guide you through the application process.
4. Create a Comprehensive Business Plan – to help your travel business take off, our team can provide insights into market trends and assist in developing a business plan tailored towards Bali’s tourism market. We can help you build strong relationships with local hotels, transport services, and tour operators on the island. 
5. Post-registration compliance – to further support your business, Emerhub can help you apply or register for the following:
   • Open a Company Bank Account – we will help your business establish a corporate bank account where you will need to deposit the minimum paid-up capital and provide proof to the taxation department. 
   • Tax registration (NPWP) – Emerhub can help you obtain a Tax Identification Number (NPWP) from the local tax office, ensuring you’re compliant with tax regulations.
   • Identification Number to Operate (NIB) – After receiving approval, Emerhub will apply for your NIB through Indonesia’s Online Single Submission (OSS) system. It serves as your company’s identity in Indonesia. It serves as an Import License, Customs Identification Number, and Business Registry Number. 

Providing the Appropriate Visa for your Clients

One of the most popular services your travel agency in Bali can offer is visa application for your clients. Depending on the purpose and length of stay, here’s a summary of the most common tourist visas in Bali:

Type of tourist visa	Details	Duration
Visa-free entry	– Available to citizens of 169 countries.  – Suitable for short visits for tourism, family visits, or transit. – Not convertible into other visa types.	Up to 30 days, non-extendable.
Visa on Arrival (VoA)	– Available to citizens from 97 countries, including major markets like the USA, UK, and Australia. – Ideal for tourists and business visitors; however, it does not permit employment. – Processing cost: Approximately USD 35 (IDR 500,000).	Valid for 30 days, extendable for an additional 30 days
B211A Visa (Onshore Visa)	– This visa allows individuals to stay longer in Bali without needing a local sponsor and offers flexibility with unlimited entries and exits. – Suitable for digital nomads and long-term travelers. – Proof of online work or business income, endorsements from the Indonesian embassy or consulate.	Valid for up to six months with multiple extensions possible.
Social/Cultural Visa	– Designed for those looking to immerse themselves in Balinese culture or engage in social activities. – Must be sponsored by a local Indonesian citizen or organization.	Valid for 60 days, extendable up to six months (four extensions of 30 days each).
Business Visa	– Intended for business meetings, discussions, or conferences. – This visa does not permit employment within Indonesia.	Valid for up to 60 days with multiple entries allowed.

Starting a travel agency in Bali requires navigating through a complex web of compliance and regulations. To help you with starting your own business on the island, Emerhub provides comprehensive guidance from registration to operation. 

Ready to open your travel agency in Bali? Get in touch with Emerhub and our consultants will be glad to assist you. We can help you fulfill all the requirements to set up your own travel company. Fill out the form below!